Breaking News-RTRS-Indonesia says degraded land key for palm expansion

YOGYAKARTA, Indonesia June 1 (Reuters) - Indonesia's palm oil industry can grow via acquisitions of six million hectares of degraded land across the archipelago, a government official said on Tuesday, in a bid to allay concerns of slowing expansion.
Planters in the world's largest palm oil producer are increasingly worried over Indonesia's plans to revoke forestry licences to palm oil firms as part of a $1 billion climate change deal signed with Norway.
Didiek Goenadi, a senior official with Indonesia Investment Coordinating Board, said forests and peatlands that hold large carbon reserves can still be preserved while giving planters an option to swap out to degraded land.

Trader's Highlight

DJI-NEW YORK, June 1 (Reuters) - U.S. stocks fell on Tuesday as energy shares slid after the latest failed attempt to halt the oil spill in the Gulf of Mexico clouded future prospects for energy company profits.

The Dow Jones industrial average <.DJI> dropped 112.61 points, or 1.11 percent, to 10,024.02, according to the latest available figures. The Standard & Poor's 500 Index <.SPX> dropped 18.70 points, or 1.72 percent, to 1,070.71. The Nasdaq Composite Index <.IXIC> dropped 34.71 points, or 1.54 percent, to 2,222.33.

NYMEX-NEW YORK, June 1 (Reuters) - U.S. crude oil futures settled nearly 2 percent lower on Tuesday as concerns that Europe's debt problems may spread and data showing slower growth in China weighed on the euro and oil futures.

Trading was volatile as crude rallied intraday with the euro and Wall Street equities on positive U.S. construction spending and manufacturing data, before falling back after failing to hold above $75 a barrel.

On the New York Mercantile Exchange, July crude fell $1.39, or 1.88 percent, to settle at $72.58 a barrel, trading from $71.64 to $75.33.

CBOT-KANSAS CITY, June 1 (Reuters) - Chicago Board of Trade wheat, corn and soybeans ended lower on Tuesday on good planting and harvest weather.

CBOT-SOYBEANS - July down 5-3/4 cents at $9.32. Tight cash markets underpin, though pressure from favorable U.S. weather.

CBOT-SOYOIL - July settled down 0.09 cent at 37.52 cents per lb. Followed soybeans as Egypt's Meditrade buys 49,000 tonnes of edible oils. China gives no sign of resolving Argentina soyoil row.

FCPO-JAKARTA, June 1 (Reuters) - Malaysian palm oil futures edged higher by Tuesday despite losses in crude oil, boosted by higher demand in the physical market and a weaker ringgit currency, traders said.

The benchmark August crude palm oil futures on the Bursa Malaysia Derivatives Exchange rose 0.99 percent, or 24 ringgit, to settle at 2,460 ringgit ($746.6) a tonne. Traded volume was 9,917 lots of 25 tonnes each. Other contracts rose between 0.63 percent to 1.48 percent.

REGIONAL EQUITIES-BANGKOK, June 1 (Reuters) - Southeast Asian stock markets fell on Tuesday as euro zone worries prompted investors to reduce their stakes in risky assets, especially shares in companies that have greatest exposure to any economic slowdown.

Indonesia <.JKSE> fell 2.6 percent, Singapore <.FTSTI> lost 1.3 percent, Thailand <.SETI> slid 1.3 percent and Malaysia <.KLSE> closed 0.2 percent down.

In Singapore, top lender DBS Group fell 2.1 percent and Oversea-Chinese Banking Corp. slid 1.6 percent, while Genting Singapore closed 6.6 percent weaker.

In Kuala Lumpur, transport company MISC Bhd fell 1 percent.